Raízen (RAIZ4) Q4 24/25 earnings summary

Executive summary

• Results for the 2024-2025 crop year were mixed, with some underperformance due to adverse weather, wildfires, and internal restructuring, but also record sugarcane crushing and advances in renewables and mobility.

• Significant organizational changes included leadership shifts, portfolio simplification, and asset sales to drive efficiency and reduce debt.

• Renewables and E2G (second-generation ethanol) volumes expanded, with multiple new plants ramping up and strong export performance.

• Strategic inventory positioning in sugar and ethanol aimed to maximize future returns, with over 80% of 2025-2026 sugar production price-fixed.

• Mobility segments in Brazil and Latam delivered margin expansion and cash generation, supported by network and customer base growth.

Financial highlights

• Net revenue reached BRL 57.8 billion, up 18% year-over-year; net income rose 59% to BRL 1.1 billion.

• Adjusted EBITDA was BRL 2.3–3.3 billion, down 29% year-over-year; primary cash generation was BRL 1.0 billion, down 50% year-over-year.

• Leverage increased to 2.3x net debt/adjusted LTM EBITDA; net debt at BRL 31.6 billion.

• CAPEX was BRL 2.2 billion, flat year-over-year; expansion investments up 30% YoY.

• Recognition of BRL 1.8 billion tax credit from ICMS exclusion in PIS/COFINS base boosted net income.

Outlook and guidance

• Sugarcane crushing for 2025-2026 is expected between 72–85 million tons, with guidance reaffirmed for leverage below 1.8x by year-end.

• Adjusted EBITDA guidance of BRL 14.5–15.5 billion (+14% YoY); CAPEX guidance of BRL 10.5–11.5 billion (-13% YoY).

• E2G: four operational plants, with further expansion planned and over 80 million liters of cellulosic ethanol produced and exported.

• Mobility segment expected to maintain profitability with network and customer base expansion.

• Deleveraging will be gradual, supported by asset sales, operational improvements, and inventory sales.